PG plc - Full-Year Results

On 27 August 2024, PG plc published the Annual Report and Financial Statements for the financial year ended 30 April 2024.

Revenues surged by 13.9% to a new record of €198 million (FY2022/23: €174 million) reflecting the further growth in income achieved by both business segments. Income from the ‘Supermarkets & Associated Retail Operations’ segment grew by 14.6% to €166 million while sales generated by the ‘Franchise Operations’ segment climbed by 10.4% to €32.6 million.

Operating costs (net of other income) increased by 14.9% to €178 million principally driven by higher cost of sales reflecting the stronger level of business volumes. However, since the growth in revenue in absolute terms was higher than the increase in costs, PG still reported a 5.5% increase in operating profit (EBIT) to a record of €20.0 million. Nonetheless, the EBIT margin dropped to 10.1% compared to 10.9% in the previous financial year. Excluding depreciation and amortisation charges, EBITDA grew by 5.9% to €23.2 million whilst the EBITDA margin weakened to 11.7% from 12.6% in the previous comparable period.

After accounting for net finance costs of €1.30 million and a tax charge of €5.20 million, PG reported a record net profit of €13.5 million, which is 6.9% higher than the previous comparable figure of €12.7 million and translates into a return on average equity of 20.6% (FY2022/23: 21.4%).

The Statement of Financial Position as at 30 April 2024, when compared to the corresponding figures as at 30 April 2023, shows that total assets increased by 3.7% (or 4.70 million) to €132.3 million, which include cash balances (including term deposits) of €12.3 million and other financial assets of €4.5 million. Total liabilities decreased by 2.4% (or €1.57 million) to €63.6 million as PG paid all its long-term borrowings. Total equity expanded by 10.0% (or €6.3 million) to €68.7 million.

Dividends

For the 2023/24 financial year, PG paid out total net dividends of €0.0671 per share, which were 7.4% higher than the corresponding dividends of the previous year and translate into an unchanged payout ratio of 53% from the previous year.

Outlook

In their commentary, the Directors stated that PG’s performance will depend on macroeconomic events beyond the Group’s control such as global inflation, geopolitical instability, and high interest rates. Moreover, it was noted that the Group operates in an increasingly competitive environment subject to several risks as a number of prospective projects tried to emulate the successful performance of the Group.

The company stated that Group sales during the first quarter (1 May 2024 and 31 July 2024) of the current financial year were at the high levels reported for the same period in 2023, nonetheless operations were negatively impacted by major roadworks adjacent to the Pama Shopping Village which hindered access to the site. The Directors stated that the Group’s target for the current financial year is to attain the level of profitability recorded in the financial year ended 30 April 2024.